Sabre to Buy British Online Travel Firm Lastminute.com
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Sabre Holdings Corp., the owner of Travelocity.com, agreed Thursday to acquire Lastminute.com of Britain for $1.1 billion to overtake Cendant Corp. as Europe’s largest online travel service.
Southlake, Texas-based Sabre and competitors Cendant and Expedia, owned by Barry Diller’s IAC/InterActiveCorp, are carving up the Internet travel industry as more people buy airline tickets and hotel rooms over the Web. A third of bookings may be made online by 2009, compared with 23% in 2004, according to forecasts by JupiterMedia Corp.
Cendant bought Ebookers and Gullivers Travel and Orbitz last year, and IAC/InterActiveCorp acquired Expedia in 2002.
Sabre, the original reservations service for American Airlines, also owns Sabre Travel Network and Sabre Airline Solutions, which serve travel agents and airline operators.
Sabre said it would pay 165 pence ($3.08) a share in cash for the company, about 57% above Lastminute’s closing price Tuesday. Lastminute Chairman Brian Collie said he couldn’t rule out any other potential bids.
The takeover comes as online travel companies consolidate to secure cheaper prices from airlines and hotel operators. Lastminute has bought 14 businesses in the last three years.
Lastminute will become Sabre’s leading European brand, Sabre Chief Executive Sam Gilliland said.
Sabre shares fell 50 cents Thursday to $19.76 on the New York Stock Exchange.
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